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- Varchev Finance: Trading day in one post 16.10.2017
Varchev Finance: Trading day in one post 16.10.2017
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Loading...Asian Exchange Market: The big Asian indexes rose during their first session for the week. Japan's Nikkei has a 0.64% increase. Australian ASX with 0.54%. Kospi added 0.1%. On the continent, Chinese exchanges have recorded different moods. Shanghai composite rose 0.12% and Shenzhen composite dropped by 0.0242%. Hang Seng rose 0.89%.
Currency market: USD remains among the strongest currencies on the market. The estimates for rise in the interest rate in December to over 80%, which is positive for the US currency. Another factor is the possibility that the next president of the Fed will be Kevin Warsh, who is believed to continue policy at high interest rates. NZD and AUD were the strongest currencies in the past week. The tranquility of geopolitical conflicts positively affects risky assets such as the Australian and New Zealand dollars. We expect RBNZ and RBA to begin tightening their monetary policies next year, which will further bolster the currencies of the countries. GBP volatility in pounds remains high. Last week, the 5th round of the Brexit talks took place. No agreement was reached on important points, but the tone of the statements was accepted by the market as positive.
Commodities market: OIL rose amid the news that Iraqi troops captured parts of Kirkuk, a Kurdish-controlled area that is rich with oil. Another positive factor for the price of black gold is the speculation to prolong the OPEC agreement after 10.2018. During the Asian session, Brent crude oil was trading at a 1.14% increase at $ 57.82 a barrel, and WTI was a 0.84% increase at $ 51.88 a barrel. GOLD continued its rally after the unsuccessful break of $ 1250. The price of precious metal is influenced directly by US inflation and, as we do not see any significant increase in inflation, gold is rising. Currently, long positions are more attractive.
US Stock Exchange: US stock indices closed last week as major benchmarks made a few new highs. DJIA is currently trading at $ 22,900, the S&P is priced at $ 2556 and $ 6106 in Nasdaq. The "corporate month" began. The engine of the market will be the quarterly reports of major US companies.
European stock market: On the first day of the trader's week, European indexes are expected to open up. The German DAX is expected to start the session by 20 points up, the French CAC 7 points increase and UKX 18 points increase. This week we look forward to seeing data on changing inflation in the union. These data are of great importance for further ECB plans. For now, the bank has failed to reach its target of 2% annual inflation, which may be one of the main reasons for the slowdown in the interest rate increase.
Economic calendar for the European and American trade sessions 16.10.2017
9:00 Germany - WPI
12:00 EU - Trade balance
15:30 USA - NY Empire state manufacturing index
15:30 Canada - Foreign securities purchases
17:30 Canada - BoC Business outlook survey
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